Questions to ask before hiring bankruptcy counsel

Explain the situation first

Give a concise description of the business, the immediate pressure, and the outcome you hope to preserve. Be explicit about threatened enforcement, payroll pressure, pending litigation, and personal guarantees. This is a preparation exercise; the lawyer determines what legal work the situation requires.

Questions for the discussion

• What experience do you have with businesses and debt structures like this one?
• Which options should be examined, including options outside bankruptcy?
• Who will do the work and who will be my daily contact?
• What does the proposed engagement cover, what is excluded, and how are fees and expenses handled?
• What information is needed before a recommendation can be made?
• What deadlines need immediate attention?

Leave with a concrete next step

Ask for a written engagement proposal if you decide to proceed. Keep a list of outstanding information and who will supply it. The U.S. Courts strongly recommends legal assistance for bankruptcy and notes that corporations and partnerships must have an attorney to file a bankruptcy case.